How will you be affected if Rishi Sunak raises income taxes or introduces a wealth tax?
As coronavirus debts go due, RISHI SUNAK and the rest of the government may be forced to make difficult decisions in the coming months. Income tax increases and worldwide wealth taxes, according to several specialists in the field, could be implemented.
As the coronavirus wreaked havoc on the economy, Rishi Sunak spent billions of pounds to keep the UK solvent during the outbreak. As the economy improves, the Chancellor is rumored to be looking into ways to pay off public debts, and Mr Sunak may wind up looking at pensions and/or taxes as possible choices.
Ocorian, a global leader in corporate and private client services, capital markets, and fund administration, commissioned a new global study on this topic to see what possibilities might be on the horizon.
According to the study, nearly two-thirds (62%) of private client advisers expect high-net-worth persons (HNWs) to pay more income tax in the coming year, with three-fifths (60%) expecting a rise in wealth taxes as governments begin to restore their economies following the coronavirus outbreak.
Tax reforms may be on the horizon, according to the UK government.
The government responded to a Treasury Select Committee report titled “Tax after Coronavirus” in June, which advocated broad tax revisions.
In a report released in March, the Select Committee suggested a number of reforms, including adjustments to VAT, corporate taxation, income tax and NICs, pension tax relief, and a one-off wealth tax.
The tone of the government’s response, according one interactive investor, showed that it was “on the case” with reforms.
“While changes to the tax structure were always unlikely to be undertaken outside of a Budget announcement, the Government’s wishy-washy response to the Treasury Committee’s proposals underlines just how delicate the position is,” said Myron Jobson, a Personal Finance Campaigner at interactive investor.
“Taxes have always been and will continue to be a political hot potato, and while the modest increase in corporation tax will help to reduce the colossal bill for Covid-19 support measures, it is only a matter of time before the need to balance the books hits our back pockets – particularly as wage rises push people over income tax thresholds that have been frozen.
“It’s critical to think about current as well as anticipated tax changes now and how you can.”Brinkwire Summary News”.